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It's very high risk, but I can imagine the bull case becoming a reality some day: Approximately $10.5 trillion US dollars exists today. Some sources claim that
by jondubois 9y ago
It's very high risk, but I can imagine the bull case becoming a reality some day:
Approximately $10.5 trillion US dollars exists today. Some sources claim that the total value of all fiat currencies in circulation (or storage) in the world amounts to $75 trillion.
The total market cap of ALL cryptocurrencies today is less than $150 billion. This means that if cryptocurrencies replace traditional currencies, then you can expect a 500x increase in the total value of all cryptocurrencies.
But it's not going to all go into Bitcoin; it's going to be spread across millions (if not billions) of unique cryptocurrencies and new ones are going to rise and fall all the time (like apps on the app store, except fairer).
There will be exchanges to convert between any cryptocurrency immaginable; they will all communicate with exchanges via a standard protocol. So any new currency which implements the protocol will be immediately tradeable on any exchange.
Different groups of people will affiliate themselves with different cryptocurrencies and this will allow the combined net worth of different groups of people to float freely on the market based on how much the rest of society values their labor/output. To get rich, it will just be a matter of associating with the the right groups of people at the right time (by buying their currency). It will be the ultimate free market.
- rothbardrand 9y agoThe thing is, unless you are auditing the code it's hard to know which cryptos are competent and which are just BS. On the other hand, since the code is open source, then you can audit the code. A crypto hedge fund that spends a lot of money actually auditing code might have great returns.